The prices of sale and purchase of agricultural land in May 2024 significantly increased compared to the previous months and are now the highest for the entire existence of the land market: the weighted average price per hectare in May was 45.0 thousand UAH, which is 8.2% higher than in April 2024, and 5.6% higher than in March this year, according to a study by the Kyiv School of Economics (KSE), which is conducted on behalf of the USAID program.
According to analysts, the price of land with the intended purpose “for commercial agricultural production” was even higher and reached UAH 46.2 thousand.
“The above prices are based on the official prices registered in the Register of Property Rights during sale and purchase transactions. Market prices for land can be much higher, because most of all transactions are concluded at a price that does not differ from the normative-monetary valuation (the minimum price established by law for former sub-moratorial lands) by more than 2%,” the KSE clarified.
At the same time, experts believe that a slight decrease in prices in April 2024 and an increase in the cost of agricultural land in May this year is unlikely to be a long-term trend.
Since the beginning of 2024, average land prices remain significantly higher than in previous periods. Consequently, it can be stated that the opening of the land market for legal entities in January 2024 has led to structural changes in the market conditions, and as a consequence has led to an increase in the value of agricultural land, according to the KSE study “Land of Indestructibility”.
The Association “Insurance Business” (ASB) appealed to the deputies of the Verkhovna Rada with a request to postpone the deadline for bringing the activities of insurance companies in line with the requirements of the law “On Insurance”, according to the information of the association. According to the new version of the law “On Insurance” adopted on November 18, 2021, insurers must bring their activities in line with its norms until July 1 this year
“We have prepared to the members of Parliament a very reasonable proposal to postpone this deadline to January 1, 2026,” – said the general director of the ASB Vyacheslav Chernyakhovsky.
He pointed out that during the preparation and adoption of the law it was planned that all the changes stipulated by it would be introduced under normal conditions of a relatively stable political and economic situation. But three months after its adoption, Russia’s full-scale military aggression began.
“It is clear that such cardinal changes are impossible in the new conditions of war and the struggle of the whole country with the biggest crisis in its existence,” he emphasized.
In support of this, Chernyakhovsky cites the following facts, in particular, the fact that the vast majority of NBU regulations were adopted in the last decade of December 2023, of which 10 NPAs have an ultra-high level of influence on all business processes of insurers. The consequence of these changes in legislation and regulatory framework is the need to update all internal documents of insurance companies (more than 100 documents with a total volume of more than 1 thousand pages), development of new insurance terms and conditions instead of insurance rules, forms for all insurance contracts, new software, etc.
“Based on this, insurers actually do not have the technical and physical ability to implement all these cardinal changes for the first half of 2024, which also accounts for the compilation and submission of all annual reports to all government agencies, the audit of financial statements, owners’ meetings, etc.” – is noted in the report
As confirmation of the data of the survey conducted by three insurance associations (ASB, LSOU, NASU) in April 2024 on readiness for the new norms of the law, which showed that out of 59 insurance companies that participated in the survey (61% of the total number of companies in the market, which own 86% of the total amount of premiums), only 20% believed that they will be fully ready to complete the necessary modernization of their activities before the date of entry into force of the requirements of the new law.
The Law “On Insurance” also introduces new capital requirements: the minimum amount of which is raised to UAH 32 mln. or UAH 48 mln. depending on the classes of insurance activities and regardless of the size of business and liabilities of the insurer, which negatively affects primarily insurers with Ukrainian capital, the report says.
“Such requirements put in unequal conditions small (mainly with Ukrainian owners) and large insurance companies. It is especially difficult to fulfill them to regional insurers, in particular, working in the regions most affected by Russian aggression: Zaporizhzhya, Kharkiv, Chernihiv and Odessa regions”, is noted in the message.
Chief Engineer of Ukrgasvydobuvannya Serhiy Lahna has been appointed acting CEO of the company instead of Oleh Tolmachev, the press service of Naftogaz Group reported on Friday.
The decision was approved by the Supervisory Board and the Management Board of Naftogaz of Ukraine.
“Lagno is a highly qualified specialist with almost 20 years of experience in hydrocarbon production. He has two higher technical educations in the specialties of Oil and Gas Equipment and Oil and Gas Production,” the statement said.
As reported, Tolmachev became the head of Ukrgasvydobuvannya in January 2023, replacing Oleksandr Romanyuk.
In 2022, UGV produced 12.5 billion cubic meters of natural gas (commercial), which is 3% less than in 2021. In 2023, the company produced 13.224 bcm of commercial gas, which is 0.679 bcm more than in 2022.
NJSC Naftogaz of Ukraine owns 100% of Ukrgasvydobuvannya shares.
Since the beginning of 2024, Nova Poshta has expanded its network in Ukraine from 26.6 thousand to 30.1 thousand service points: 12.1 thousand branches and 18 thousand post offices.
“Our goal is to have all branches and post offices within walking distance to be convenient,” the company’s release on Friday quoted Nova Poshta CEO Oleksandr Bulba as saying.
According to the report, since the beginning of the year, the company has installed 2.7 thousand new post offices in Ukraine and opened 770 branches.
It is noted that the most active growth of the network took place in Kyiv, Lviv, Chernivtsi, and Ivano-Frankivsk regions.
It was specified that Nova Poshta opened 344 new branches and post offices in the frontline areas in Kharkiv, Odesa, Donetsk, Zaporizhzhia, Sumy, Kherson, and Dnipro regions.
The company noted that by the end of the year it plans to increase its network to 36 thousand service points.
The Ukrainian Danube Shipping Company (UDP) supports the call of agricultural producers and exporters to introduce a 30% discount on rail transportation to Izmail and Reni stations, the press service of the state-owned enterprise said in a telegram.
“Ukrainian agricultural producers propose to the Cabinet of Ministers to put the ports of Odesa and the Danube region on an equal footing… The UDP fully supports the proposal of the agrarians. The enemy does not stop attacking the infrastructure of Odesa. Ukraine must maintain alternative export routes,” the statement reads.
The UDP emphasized that the Danube route is a plus of 250 km of roads or 200 km of railroad. Because of this, the Danube ports are losing competition even with the same freight and transshipment tariffs that apply in Odesa ports.
The shipping company reminds that a precedent has already been set: the Cabinet of Ministers recently introduced a 30% discount on rail transportation of agricultural products from areas where hostilities are possible, the UDP said, adding that the need for exports to move across the Danube has been repeatedly discussed at industry events, forums, and conferences. However, in the context of critically low grain prices, producers and traders are not ready to lose earnings (margin) to reduce risks.
“The discount on rail transportation will absolutely pay off if the condition for receiving it is the transshipment of grain to the state river or sea fleet. The state budget will compensate for the revenue lost by the railroad at the expense of freight income,” the state-owned enterprise says.
The UDP reminded that it is currently transporting Serbian grain and emphasized that it has enough fleet to work with Ukrainian products at the same time.
“Other Danube countries are lobbying very hard for the interests of their own carriers, because the entire Danube is suffering from an abnormal drop in rates and cargo flows. Ukraine has its own national carrier, which should also be supported and preserved,” the UDP emphasized.
Finland will send a new military aid package to Ukraine, a decision made by the president on June 28 on the proposal of the government.
According to the website of the Finnish Ministry of Defense, this is the 24th delivery of defense equipment from Finland to Ukraine. It is estimated that the replacement of the equipment included in this shipment will cost Finland approximately 159 million euros. The total value of defense equipment supplied by Finland to Ukraine is EUR 2.2 billion.
“Finland intends to support Ukraine in its fight against Russia’s unjustified aggression. It is not only about Ukraine, but also about the right of all free nations to their ultimate existence. We, the Finns, have learned from our own history how important this issue is,” said Defense Minister Antti Häkkänen.
The ministry noted that Finland is also participating in the Czech initiative for joint procurement of ammunition. Finland has also decided to participate in an armored coalition led by Poland, Germany and Italy, and an information technology coalition led by Estonia and Luxembourg. The purpose of the international coalitions is to provide long-term support to Ukraine.
“For operational reasons and to ensure the safe delivery of aid, its exact content, methods and timing are not disclosed. When providing assistance, both the needs of Ukraine and the state of the resources of the Defense Forces are taken into account,” the Defense Ministry said.
